EASTMONEY(SZ:300059) Soochow Securities·2025-03-15 06:39Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - In 2024, the company is expected to achieve a total revenue of 11.6 billion yuan, a year-on-year increase of 4.72%, and a net profit attributable to shareholders of 9.61 billion yuan, reflecting a year-on-year growth of 17.29% [1] - The company’s market share in brokerage and margin trading has shown significant improvement, while the fund distribution business continues to be impacted by fee reductions [1][8] - The company’s return on equity (ROE) increased by 0.65 percentage points to 12.59% [1] Revenue and Profit Forecast - Total revenue is projected to grow from 11.08 billion yuan in 2023 to 11.6 billion yuan in 2024, with further increases expected in subsequent years [1][22] - Net profit is forecasted to rise from 8.19 billion yuan in 2023 to 9.61 billion yuan in 2024, with continued growth anticipated through 2027 [1][22] - Earnings per share (EPS) is expected to increase from 0.52 yuan in 2023 to 0.61 yuan in 2024, with a target of 1.00 yuan by 2027 [1][22] Business Segment Performance - The brokerage business is projected to generate a revenue of 8.49 billion yuan in 2024, up from 7.19 billion yuan in 2023, indicating a year-on-year growth of 18.1% [1][22] - The fund distribution service revenue is expected to decline to 2.84 billion yuan in 2024, down from 3.63 billion yuan in 2023, reflecting a year-on-year decrease of 21.6% [1][22] - The company’s financial data service revenue is projected to remain stable at around 192 million yuan in 2024 [1][22] Cost Management - Total operating costs are expected to decrease by 2% to 4.3 billion yuan in 2024, with significant reductions in sales and operating costs [1][22] - Sales expenses are projected to drop by 31% to 322 million yuan, while R&D expenses are expected to increase by 6% to 1.14 billion yuan [1][22] Strategic Advantages - The company benefits from strong customer loyalty and diverse demand through its leading platforms such as Eastmoney and Tiantian Fund [1] - The integration of AI capabilities is expected to enhance the company's financial services, particularly through the upgraded Choice 8.0 version [1] - The company is well-positioned to maintain its leading position in the retail brokerage sector, leveraging its traffic advantages and low commission strategies [1]